New Year’s Resolution – Improving your Financial Health
The New Year is definitely a great time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions concentrate on getting healthier, enhancing their career, or improving their financial circumstances. Now we all recognise how challenging it can be to stick to our New Year’s resolutions, so it is necessary that you make sensible, attainable goals that can be accomplished with a specific degree of persistence and self-discipline.
If you’ve come to a decision that you wish to improve your financial health in 2018, there’s a fair amount of preparation and planning needed. To obtain considerable financial improvements in your life, it’s integral that you focus on the things you can control and to review your progression regularly. To give you some ideas on the best ways to do this, the following outlines some recommendations that you should follow if you aspire to enhance your financial well-being in the forthcoming year.
Set clear financial goals
Research have indicated that merely writing down goals substantially increases the chances of you accomplishing them. In a monetary sense, writing down individual goals with an expected timeline not only increases the chances of you achieving these goals, but you’ll also understand what is most important to you.
A number of financial goals, for instance retirement, may require the guidance of a financial planner, but there are many simple, feasible goals that you can arrange on your own, for instance purchasing a car, saving for a home deposit, or preparing an emergency fund for a rainy day. It is vital that you take small steps to reach these goals, and evaluating your progress frequently is the key to success.
Increase your savings
Lot of people aren’t sure how much money they save annually, so it is crucial that you determine an actual dollar amount that you want to save for the following year. Regardless of whether you achieve this goal or not isn’t the point, the fact that you’re setting specific goals and planning ways to achieve these goals is the most important part.
Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government payments), or established an automatic deposit into an emergency fund or high interest savings account each week. Regardless of how you do this, increasing your savings will bolster your net worth and overall financial health.
Track your spending
Understanding how much you spend each month is pivotal in having the capacity to increase your financial health. Keeping every bill and receipt and manually creating a spreadsheet is one way to do it, but there are a few terrific apps that keep track of your spending on the go, giving you a detailed indication of how much you’re spending with little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and efficient tool that helps you understand your average monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t fit you, there are lots of other apps available, so don’t hesitate to test a couple to see which is best for you.
Revise your mortgage and insurance policies
Examining your home loan and insurance policies is a useful way to increase your savings. For instance, you should be assessing how your current mortgage and insurance policies measure up to other providers on an annual basis. Financial institutions modify their policy structures regularly, so chances are you can get a better deal if you do a bit of research.
Even small decreases in interest rates can save you thousands of dollars each year, so it’s clearly worth the effort! If you find a better offer somewhere else, don’t be afraid to ask your existing provider to match it, and at the same time, don’t be afraid to switch providers if they don’t. There’s an abundance of online resources which can adequately guide you through this process.
Seek advice promptly if you’re experiencing financial hardshp
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Many people suffer through years of stress from financial turmoil without realising that there are a number of options available to them to boost their financial wellbeing.
If you’re encountering any financial anguish, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial predicament, don’t hesitate to speak to Bankruptcy Experts Tablelands on 1300 795 575, or visit our website for more information: www.bankruptcyexpertstablelands.com.au